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Direct labor cost is that labor which directly related with manufacturing of products like machine workers etc while indirect labor cost is that labor cost which directly not manufacturing product but required as well like line mangers or factory supervisors salary etc.

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Q: Direct and indirect labor costs
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Related questions

Prime cost and conversion cost?

Prime cost = direct materials + direct laborwhile conversion cost = direct labor + factory overhead( which includes indirect materials, indirect labor and other indirect costs


Is Direct Labor included in Overhead costs?

Direct labor are not part of overhead costs and shown separately while indirect labor are part of overhead costs and included in overhead cost because those labor cannot be allocated separately or identifiable separately.


Does prime cost include indirect cost?

prime costs only includes direct cost like direct material and direct labor.


What costs other than direct materials costs and direct labor costs incurred in the manufacturing process are classified as?

Indirect costs(salaries, materials not directly involved in manufacturing), period costs(selling and admin costs)


Why distinguish direct costs from indirect costs?

It is done so to keep control on costs as direct costs are controllable while indirect costs are not.


Is direct cost same to indirect cost?

No direct costs and indirect costs are not same and opposite of each other.


Why do managers consider direct costs to be more accurate then indirect costs?

Answer this question...why do managers cosider direct costs to be more accurate than indirect costs?


Explain the difference between direct cost and indirect costs?

Direct cost are those costs which varies directly with variation in volume of products units like direct labor or direct material while indirect cost has not direct connection with volume of units of products like depreciation building rent supervisors salary etc.


1 Components of manufacturing costs Classify each of the following manufacturing costs as direct or indirect for automobiles?

Manufacturing Cost: There are three major component of manufacturing cost.Such as : DIRECT Material: those material s that become an integral part of the product and that can be conveniently traced directly to it. Direct Labor:- those labor costs that can be easily traced to individual units of product. Manufacturing Overhead: Manufacturing costs that can not be traced directly to specific unit product.Example indirect materials,indirect labor. Indirect Labor: Wages paid to employees who are not directly involved in production:work. Example:-maintenance worker janitors and security grads. Indirect Materials: Materials used to support the production process. Example:- Lubricants and clearing supplies used in the automobile assembly plant.


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Is indirect labor is a part of what cost?

Indirect labor is part of overhead costs and included in total product cost.


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